Abbott directs TCEQ to pause data center permits

(KVIA) -- Monday, Texas Governor Greg Abbott told the Texas Commission on Environmental Quality to stop permits sought by data centers until the Electric Reliability Council of Texas completes its audit.

The governor said ERCOT, the Public Utility Commission of Texas and the Texas Water Development Board require information to make informed decisions. He said no state agency will move forward with regulatory approvals related to data center development until the needed info is acquired.

Gov. Abbott directed PUCT and ERCOT to audit all data centers undegoing ERCOT's interconnection process. He said his order was to "not compromise the reliability of the Texas electric grid and does not put Texans’ natural resources at risk."

On Sept. 14, Gov. Abbott directed TWDB to compel data centers to comply with water use reporting requirements and impose legal consequences for failure to comply with state law.

The PUCT, ERCOT, and TWDB will determine the impact of data centers on grid reliability, security and water resources.

The governor said data center projects have to cover all electrical costs, result in lower residential electric bills and complete the ERCOT audit. Additionally, he said data centers must not use water that local communities need and report all electricity and water usage.

While ERCOT and TWDB do their audits, TCEQ has to align its permitting decisions with the governor's directives and use the audits' information.

The governor said TCEQ will provide an update on its compliance by Oct. 19.

Gov. Abbott said he will work with the Legislature to "eliminate any financial incentives for data centers."

The governor is running for re-election this November against Democratic nominee Gina Hinojosa.